Electricity generation in Sri Lanka is primarily run by hydro power and thermal heat, with sources such as photovoltaics and wind power in early stages of deployment. Although potential sites are being identified, other power sources such as geothermal, nuclear, peat, solar thermal and wave power are not used in the power generation process for the national grid.
Electricity in Sri Lanka is generated using three primary sources — thermal power (which includes energy from biomass, coal, and all other fuel-oil sources), hydro power (including small hydro), and other non-conventional renewable energy sources (solar power and wind power):
Hydroelectricity is the oldest and historically the principal source of electricity generation in Sri Lanka, holding a share of 48% of the total available grid capacity in December 2013 and 58% of power generated in 2013. Hydroelectric power generation has been constantly under development since the introduction of the national grid itself, but its market share is declining because suitable new sites are scarce. Currently, ten large hydroelectric power stations are in operation, with the single largest hydroelectric source being the Victoria Dam. Although a large portion of the country's hydroelectric resource are tapped, the government continues to issue small hydro development permits to the private sector, for projects up to a total installed capacity of 10 MW per project.
State-run hydroelectric developments are categorized into three main geographic sectors.
Thermal power stations in Sri Lanka now roughly match the installed hydroelectric generation capacity, with a share of nearly 49% of the available capacity in December 2013 and 40% of power generated in 2013.Thermal power stations in Sri Lanka runs on diesel, other fuel oils, naptha or coal. The Norocholai Coal Power Station, the only coal-fired power station in the country, was commissioned in late 2011, adding a further 300 megawatts of electrical capacity to the grid. It is currently planned to add an additional 600 MW of capacity to Norocholai in the next half decade. The second and final coal power station, the Sampur Coal Power Station, is under consideration in Trincomalee and is expected to be in-service by the end of 2017.